According to the Russian Tax Code, income from the sale of plant and animal products grown by citizens on their own land is not taxed if certain conditions are met.
The law states: "Income from the sale of livestock products (both live and raw or processed slaughter products) and plant products (both natural and processed) grown on personal subsidiary agricultural plots located on the territory of the Russian Federation is not subject to taxation."
Two conditions for tax exemption
To benefit from the tax exemption, two basic conditions must be met simultaneously. First, the land size must not exceed 50 donums (0.5 hectares). The second condition is that production must be carried out entirely by the individual themselves, without employing paid workers.
If either of these conditions is violated, the income from sales must be registered with the tax authority and a 13% income tax must be paid.
Document requirement and sales points
Those wishing to benefit from the tax exemption must submit a document proving that the sold products were grown on their own land. This document is issued by the local government body or the management of the property owners' association, and the document must include the size of the land.
Citizens wishing to sell their own products can use seasonal markets, official marketplaces, and wholesale centers.